The Self-Directed 401k and its Essential Factors

Goodbye to the conventional thinking of our elders that one employment must last forever, which is basically not true at all! Who doesn’t want to enjoy the security of tenure, right? But things don’t easily fall into their right places. In fact, it is a tedious task to locate a generous employer who will feed you with the benefits that you crave for. Nevertheless, it is but common for the workers to shift into other fields, do job hopping, move out of one company and transfer to another, relocate, and the like. So much more, the hope for the future reward that may be reaped out of the social security trust funds don’t seem too tangible these days. Enough of mentioning the so-called Congressional borrowing which has existed for several decades in a row! Nevertheless, one important thing that concerns every worker is that of the issue on retirement. And in this scenario, the self-directed 401k is commonly turned to.

Anyone will likely fear what the future may bring. Retirement is the time when you will no longer render service to anyone and to any company. At the same time, no fixed monthly salary will be given to you. Who seems to be on the losing end? Isn’t you? Therefore, it is high time for you to ponder on what you are to do and how you are to spend your retirement days. Are you going to allow yourself to be confronted with the dreadful financial dilemma? Surely not.

The Retirement Plan to Benefit the Individual Employees

401k retirement plans are generally offered by the employers. In a matter of a certain period, you should contribute a portion of your salary to let the funds under your name accumulate. However, it is not at all times beneficial to rely on the employer’s 401k retirement plan offer. How about if you encounter the same circumstances as mentioned above? How about if you move on to another location and to another job? You will have to go through a series of procedures just so you can claim your money. Everything is going to be smooth if you go for a self-directed 401k retirement policy.

The Solo Retirement Account as an Advantage to an Investor

Being a full-time or a part-time investor on any business allows you to manipulate the proper phasing of your retirement. And since you are involved in the investment industry, it is just proper to devote some money as a guarantee that during your retirement days you are not going to be eaten up by poverty.

The self-directed 401k gives you the opportunity to assume the role of an investment superior. Apart from the common no-load mutual funds, bonds, stocks, options, and many more, your choices have been extended towards the deeds of trust, real estate investment, tax liens certificates, commercial paper, mobile and homes rental, forex, business equipment leasing, limited partnerships, and many more.

It is through the self-directed 401k that you are given the freedom to let your investment grow at the maximum in time for your retirement.

4 thoughts on “The Self-Directed 401k and its Essential Factors

  1. I have been contributing only about 20% of my earnings into my 401-k and my employer matches that with 1% . I am age 62. Is it possible to deposit in an amount that would effectively catch up substantially to what I was qualified in the earlier years?

  2. can I move my IRA money from former employer (401K money) to my new employers 401k plan?

  3. What is your take on the non-recourse real estate loan option when investing in a self-directed IRA? I anticipate being laid of in the near future which would then permit a rollover from my current retirement plan. The real estate market is verrrrrry low in our city. So low that the investment properties I would consider (low purchase price, already have equity, can rent for 6-10 times what the loan pmt would be…) will most certainly double in price (at least) by the time I could retire. The rent payments would have to be deposited directly into the IRA so, in essence:

    1. I would be forced to contribute instead of blowing the rent payments like I would be inclined to and
    2. The rent I would deposit throughout the course of a year would significantly surpass my current contributions and the gain I have made in recent quarters.

    This is a new concept for me and I’m interested in getting some feedback.

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